- Values Alstom’s energy division at €11.4 billion including the €1.9 billion in cash on its books.
- To base four global power-equipment businesses, including hydropower and steam turbines, in France.
- To add French citizen to its board.
- “We’re committing to increase the number of our employees, in particular skilled jobs in engineering and production” in France: CEO Jeff Immelt.
- Deal would close in 2015.

The Siemens offer:

- Up to €11 billion in cash.
- To exchange Siemens’ long-distance and suburban train assets for Alstom’s energy divisions.
- The creation of two new European industrial groups: a France-based train-making company and a Germany-based energy-equipment giant.
- Siemens to retain 19% stake in train-making company though initially stake could be larger.
- “Despite the lack of cooperation of the Alstom CEO, we are prepared to submit a binding offer provided Alstom has granted us four weeks’ access to its management and to the data room in order to conduct a customary due diligence in line with industry standards:” Siemens letter to Alstom management.

The Alstom reaction:

- Accepted GE’s preliminary offer.
- A committee led by board member Jean-Martin Folz to undertake month-long study of offer.
- Decision by June 2.
- To pay GE a penalty worth 1.5% of the acquisition price if the deal doesn’t work out.
- To provide Siemens with fair access to information to allow German group to make its own binding offer.
- Warning to trade unions: “If you’re going to delay things, next time we see each other it will be to talk about the bankruptcy of this company,” CEO Patrick Kron tells labor leaders at a closed door meeting according to Christian Garnier, a union representative who attended.

The French government’s reaction:

- President François Hollande: “With regard to this dossier, I have only one criteria: who will be most favorable in creating activity in France and jobs in France.”
- Economy Minister Arnaud Montebourg: Alstom’s Mr. Kron has committed “a breach of national ethics” in negotiating with GE without first informing his board or the government.

Industry reaction:

- “We are watching the situation very closely:” Ulrich Spiesshofer, CEO of ABB Ltd., the Swiss engineering group that competes with Alstom, Siemens and GE in power equipment.
- Rolls-Royce PLC, the U.K. aero-engine and power-turbine maker, announces it is in talks to sell its gas-turbine and compressor activities to Siemens, negotiations which predate Siemens’ approach to Alstom.